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What is the Concept of Long-Run Growth in Economics?

by May 21, 2018Homework Answers

Long-Run Growth Homework Answers

Business is a simple technique of earning money as well as making a contribution to economy of a society. Its idea is simple. You make some investments in certain areas, like buying some raw materials for a product or in some kind of training or something more abstract. Then, manufacturing of those intended products and selling them at a higher price or selling service at an appropriate rate, will earn revenue.
Part of revenue, which is left after compensating for all your investments, gives the profit. This amount of profit, its consistency, and its changes decides how well is this business running. If the business makes profit for a long period of time then it can be said that the growth of that business running for a long time.   You will get more clear idea about it in any long-run growth homework answers samples.
Analysis of the subject topic
Several factors are there which determines that business is going through a long run growth.   The main determining factors are –

  1. Success of a company

Think about it wisely for a while. How does one define the success of a company? Which one do you call to be a good and effective firm? Surely, if the profit of a business keeps on decreasing with time, then it cannot be said to be successfully running. Companies making rapid market at the cost of their profit or employee satisfaction are expected to be perished in the long run.
Then again, if quality of goods or services of an agency is not up to the mark, then they will make little market, especially if there are better competitors. Without market, no business can stand.
Apart from these, customer satisfaction and customer relation is also an important issue, especially in case of companies offering services. Even if a service provider happens to give quality service to its customer, if there are conduct or behavioral problems then it might not prove effective and capture the market.
That means, in brief, a company can be said to be running successfully if its profit margin, product or service quality, and market keeps on increasing and expanding with time. This is the main aim of each and every firm and organizations, and those who can realize them can keep on existing in the market and others will perish. For more, you may approach any popular long-run growth homework answers provider.

  1. Long term planning

It is sometimes seen that just the present situation in business does not always carry much significance in future. For example, often companies making rapidly expanding markets and highly hiking revenues at the present moment slowly becomes extinct in later times, due to several reasons.
Also, most significantly, there are many organizations which may have a very poor start with little profit margins and hopeless markets. But they have been witnessed to prosper hugely in future economy.
This is the reason why company heads and financers focus more on future planning than making huge profits in the present. That is why long term planning is so necessary for any company finance. You can learn more for answering several questions during your study course with any effective long-run growth homework answers.

  1. Labors satisfaction

Labors are most significant factor for overall growth and development of any kind of business. Labors problem is a huge obstruction to grow, develop and flourish a business. Hence company has to handle this significant issue very carefully. To reduce these problems lots of laws and acts are introduced. You can learn in detail in long-run growth homework answers.
The factors helping in economic growth
For a pro-long economic growth, business has to take some steps strategically. They are –

  1. Collection and assimilation of resources

The main resource of a business is its capital and financial support. If a company is financially stable, then it can overcome lots of hurdle on its way hence can produce and supply as per the market demands. Can stocks for further requirements. Can grow quickly, expands rapidly and can keep up its position for a long run. So, proper utilization of recourse or fund is a necessary factor for an over-all growth.

  1. Increments of inputs

Input is one of the most important factors of production, and a business can grow rapidly through its production. More production leads to more sales. More sales, earn more profit. Profits help to make a fund which helps in growth.

  1. Introduction of advanced technology

Advance technology reduces efforts; enhance the quality and quantity of product hence demands of product is increased more profit can be earned this helps in over-all growth for a long run.
For a clear explanation and understanding, please approach to a long-run growth homework answers. 

  1. Production power of a labor

Efficiency, ability skills, and education determine the production capacity of a labor. High labor productivity ensures maximum production of quality product. So labor must be skilled and qualified to use advanced technology to produce maximum quality products.

  1. Flexible labor market

Skilled and efficient labor is not always available in the market so manufacturer should steps more strategically. Either he or she has to wright for a right time when they will get skilled labor easily or they have to change the place where they will get flexible labors
For a detail information about this subject topic to cope-up with all this factors you must select an accurate long-run growth homework answers.